TuSimple and Navistar Provide Update on Joint Development Agreement

Rhea-AI Summary

TuSimple and Navistar have mutually agreed to end their co-development under the 2020 Joint Development Agreement, announced on December 5, 2022. This decision does not eliminate the possibility of future collaboration between the two companies. TuSimple's CEO Cheng Lu emphasized the necessity to confront upcoming challenges and ensure long-term stability, asserting confidence in their autonomous driving technology's capacity to enhance trucking safety and efficiency.

Positive

• TuSimple demonstrated commitment to addressing stakeholder concerns through CEO Cheng Lu's return.
• The company has achieved milestones like the world's first fully autonomous, Driver Out semi-truck run on public roads.

Negative

• Ending the co-development agreement with Navistar may impede TuSimple's development timelines.

SAN DIEGO and LISLE, Ill., Dec. 5, 2022 /PRNewswire/ -- In a joint announcement, today TuSimple (NASDAQ:TSP) and Navistar announced an end to their co-development under the 2020 Joint Development Agreement. The decision to end the development agreement does not preclude the companies from working together in the future.

"I decided to return as TuSimple's CEO to address the challenges ahead and to set us on a path to long term stability. We have proven our technology works, and I'm committed to addressing the concerns of stakeholders. I firmly believe in this company and its ability to improve the safety and efficiency of the trucking industry through world-class autonomous driving technology," said TuSimple CEO Cheng Lu.

"Navistar believes autonomous driving technologies will be a key component of a future transportation and logistics system and is committed to the development of a safe and efficient autonomous driving solution," said Navistar Vice President Srinivas Gowda.

About TuSimple

TuSimple is a global autonomous driving technology company headquartered in San Diego, California, with operations in Arizona, Texas, Europe, and China. Founded in 2015, TuSimple is developing a commercial-ready, fully autonomous (SAE Level 4) driving solution for long-haul heavy-duty trucks. TuSimple aims to transform the $4 trillion global truck freight industry through the company's leading AI technology, which makes it possible for trucks to drive safely autonomously, operate nearly continuously, and reduce fuel consumption by 10%+ relative to manually driven trucks. Global achievements include the world's first fully autonomous, Driver Out semi-truck run on open public roads, and the development of the world's first Autonomous Freight Network (AFN).  Visit us at www.tusimple.com.

About Navistar

Navistar, Inc. ("Navistar") is a purpose-driven company, reimagining how to deliver what matters to create more cohesive relationships, build higher-performing teams and find solutions where others don't. Based in Lisle, Illinois, Navistar or its subsidiaries and affiliates produce International® brand commercial trucks and engines, IC Bus® brand school and commercial buses, all-makes OnCommand® Connection advanced connectivity services, and Fleetrite®, ReNEWeD® and Diamond Advantage® brand aftermarket parts. With a history of innovation dating back to 1831, Navistar has more than 14,500 employees worldwide and is part of TRATON SE, a global champion of the truck and transport services industry. Additional information is available at www.Navistar.com.

SOURCE TuSimple Holdings, Inc.

FAQ

What was the TuSimple and Navistar announcement about on December 5, 2022?

TuSimple and Navistar announced an end to their co-development under the 2020 Joint Development Agreement.

What is the impact of the TuSimple and Navistar partnership ending on TSP stock?

The end of the partnership may affect TuSimple's development timelines and investor sentiment.

Who is TuSimple's CEO and what did he say regarding the company's direction?

TuSimple's CEO Cheng Lu mentioned his commitment to addressing challenges and ensuring long-term stability.

What are the future prospects for TuSimple after ending the agreement with Navistar?

While the agreement has ended, both companies can still collaborate in the future, leaving potential avenues open.